What is a cloud ERP system and what advantages does this solution offer?
New technologies such as in-memory computing, artificial intelligence, and cloud computing are no longer just emerging trends or future aspirations for today’s businesses. Enterprise resource planning systems (ERP) are a core component of corporate resource management. Cloud ERP solutions like SAP S/4HANA Cloud allow businesses to easily and securely integrate these technologies into their IT landscape.
ERP solutions are particularly ideal for dynamic companies that want to stay on track for growth and success. Modern technologies ensure maximum flexibility. These include digital assistants, the latest analysis tools, regular updates and resulting constant innovation. As a business software, cloud ERP is the most important tool for ensuring your company's success in the digital age.
Your personal solution: classic on-premise ERP or cloud-based?
When choosing a modern ERP platform, there are two deployment options to choose from: on-premise and cloud.
Classic ERP systems: With an on-premise solution, the individual company retains all control rights over the IT infrastructure and software. Data is stored on the company’s own hardware and servers; the company itself is also responsible for data security and data protection. Hardware and software are usually obtained through one-time purchases and an annual software maintenance fee is added. A support team is needed for on-premise systems, for example to maintain the infrastructure and for upgrades to the on-premise ERP; such operating costs can drive up expenditure in the long term.
Modern cloud-based ERP systems: The provision and management of these types of cloud-based ERP solutions are the responsibility of an external service provider. With this deployment method, expenditure takes the form of fixed monthly operating costs. Investment costs are lower than those for on-premise deployments. The external service provider takes care of all the maintenance, software updates and security measures. Last but not least, a cloud ERP system can also be accessed remotely.
The advantages of a cloud ERP system at a glance
Rental model: Opex instead of Capex
The expenditure for the software-as-a-service option takes the form of ongoing operating costs (Opex). High initial investment costs (Capex) for enterprise resource planning are a thing of the past with the cloud platform. Plus, cloud applications save internal resources thanks to their short implementation time. This software-as-a-service version isn't just ideal for large companies, but also for mid-size businesses with small IT departments. This is down to the fact that the cloud ERP provider takes care of administrative tasks such as maintenance, installing updates, release changes, back-ups, and archiving. As a result, the cloud ERP software is always up to date.
Extendable, scalable and customizable
Intuitive, mobile, and specific to you: The ERP system can be easily expanded and scaled via add-ons, making it ideal for dynamic markets and growing businesses. The cloud ERP from ERP provider SAP also stands out with its exceptional ease of use.
Business intelligence in real time
The system allows you to create statistics, reports, and forecasts for areas such as supply chain management and customer relationship management with just a few clicks. Cloud ERP is also able to process huge volumes of data (big data) at lightning speed.
Data protection & best practices
A cloud ERP system is based on established standard processes, i.e. best practices for business processes. It's easy to expand and scale, making it ideal for dynamic markets and growing businesses. Plus, it offers the added benefit that data security and protection requirements are automatically updated.
Comparison: private cloud and public cloud in the ERP software environment
Cloud-based ERP systems also come with different deployment models. How are the public and private clouds different from each other?
As its name suggests, the public cloud is a public open source solution. Depending on the provider, this ERP solution offers various services such as automatic updates and storage space, which are billed according to usage and can be flexibly selected or expanded as required. The public cloud is therefore the most cost-effective option for ERP software and is the quickest to set up according to needs.
The private cloud provides its resources exclusively for one company. It can therefore be hosted by the company's own data centers or by cloud service providers. The private servers make a private cloud suitable for organizations with critical business processes that require a high degree of control. The advantage of a private cloud is that it is extremely adaptable to individual requirements. The drawback is the higher administrative effort involved on the part of the company and the ERP cloud provider. This is more time and cost intensive.
ORBIS checklist: Cloud ERP for the manufacturing industry
These 22 cloud ERP solution facts and features you need to know!
Are you a manufacturing company looking for a new ERP system? Whether it's industry-specific processes or prerequisites for a successful start in the cloud, our checklist provides you with information on key ERP functions to help you choose the right cloud provider and business software. So you can make sure your ERP implementation is efficient and risk-free.
SAP S/4HANA Cloud: the cloud ERP system of the future
With SAP S/4HANA Cloud you get a cloud ERP that meets all the latest requirements. It’s a fully integrated ERP system which can be adapted to your specific requirements via the SAP Business Technology Platform (SAP BTP). Together with the SAP HANA in-memory database platform, SAP S/4HANA Cloud becomes the core component needed for an intelligent business.
The smart cloud-based ERP solution
S/4HANA Cloud impresses with its exceptional usability on all devices and superior security standards. It uses the SAP HANA in-memory database, which accelerates data-based decisions and actions in real time. In addition, industry-specific best practices form the basis for established and custom-fit business processes.
Integrated artificial intelligence
Embedded AI and machine learning provide new insights, advanced real-time analytics, and transformed business processes with intelligent automation.
All-in-one solution
The S/4HANA SAP Cloud platform is at the center of the full-service option RISE with SAP, a must-have combination for redesigning your processes and establishing an intelligent business.
As SAP ERP specialists, we get the most out of your business processes with SAP S/4HANA Cloud
Need your S/4HANA transformation to be quick and risk-free? This not only requires expertise in SAP but also in your relevant industry. We have both and specialize in the processes used by mid-size industrial businesses. Our extensive experience, which stems primarily from manufacturing company projects, ensures that you can rely on us: by choosing ORBIS as your partner, your digital future is set for long-term success!
What our SAP S/4HANA consulting service provides:
- Needs-base sizing of your system infrastructure
- Scalable landscape design
- Risk-compliant availability solution
- Modular security solutions
- End-to-end recovery concepts
- Seamless integration into your specific IT landscape
I'm here to help you
Christian Lai (Senior Account Manager SAP)
Tel.: +49 681 9924 209
E-Mail: christian.lai(at)orbis.de
